Chapter 17

Question 1

target return objective

Answer 1

sets a specific level of profit as an objective

Question 2

profit maximization objective

Answer 2

seeks to get as much profit as possible

Question 3

sales-oriented objective

Answer 3

seeks some level of unit sales, dollar sales, or share of market-without referring to profit

Question 4

status quo objective

Answer 4

don’t rock the pricing boat

Question 5

nonprice competition

Answer 5

aggressive action on one or more of the Ps other than price

Question 6

administered prices

Answer 6

consciously set prices

Question 7

one price policy

Answer 7

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

Question 8

flexible price policy

Answer 8

offering the same product and quantities to different customers at different prices

Question 9

skimming price policy

Answer 9

tries to sell the top of a market-the top of the demand curve @ a high price before aiming @ more price-sensitive customers

Question 10

penetration pricing policy

Answer 10

tries to sell the whole market at one low price

Question 11

introductory price dealing

Answer 11

temporary price cuts to speed new products into a market and get customers to buy them

Question 12

basic list prices

Answer 12

the prices final customers or users are normally asked to pay for products

Question 13

discounts

Answer 13

reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves

Question 14

quantity discounts

Answer 14

discounts offered to encourage customers to buy in larger amounts

Question 15

cumulative quantity discounts

Answer 15

apply to purchases over a given period such as a year and the discount usually increases as the amount purchased increases

Question 16

noncumulative discounts

Answer 16

apply only to individual orders

Question 17

seasonal discounts

Answer 17

discounts offered to encourage buyers to buy earlier than present demand requires

Question 18

net

Answer 18

means that payment for the face value of the invoice is due immediately

Question 19

cash discounts

Answer 19

reductions in price to encourage buyers to pay their bills quickly

Question 20

2/10 net 30

Answer 20

buyer can take a 2% discount if paid in the first 10 days

Question 21

trade (functional) discount

Answer 21

a list price reduction given to channel members for the job they are going to do

Question 22

sale price

Answer 22

a temporary discount from the list price

Question 23

everyday low pricing

Answer 23

setting a low list price rather than relying on frequency sales, discounts, or allowances

Question 24

allowances

Answer 24

given to final customers, business customers, or channel members for doing something or accepting less of something

Question 25

advertising allowances

Answer 25

price reductions given to firms in the channel to encourage them to advertise or otherwise promote the suppliers locally

Question 26

stocking allowances

Answer 26

given to an intermediary to get shelf space for a product

Question 27

push money allowances

Answer 27

given to retailers or wholesalers to pass on the retailers’ sales clerk for aggressively selling certain items

Question 28

trade-in allowances

Answer 28

a price reduction given for used products when similar new products are bought

Question 29

rebates

Answer 29

refunds paid to consumers after a purchase

Question 30

zone pricing

Answer 30

making an average freight charge to all buyers within specific geographic areas

Question 31

uniformed delivered pricing

Answer 31

making an average freight charge to all buyers

Question 32

freight absorption pricing

Answer 32

means absorbing freight costs so that a firm’s delivered price meets that of the nearest competitor

Question 33

value pricing

Answer 33

setting a fair price level for a marketing mix that really gives the target market superior customer value

Question 34

unfair trade practice acts

Answer 34

put a lower limit on prices, especially at the whole and retail levels

Question 35

dumping

Answer 35

pricing a product sold in foreign market below the cost of producing it or at a price lower than in its domestic market

Question 36

phony list prices

Answer 36

prices customers are shown to success that the price has been discounted from

Question 37

wheeler lea ammendment

Answer 37

bans unfair or deceptive acts in commerce